• by Tanya Gazdik , August 12, 2025

Spirit Airlines may be forced to go out of business in the next year as it struggles to regain profitability after emerging from bankruptcy earlier this year.

“After cutting its debt during restructuring, Spirit has tried to attract bookings by marketing more upscale products and looking for new ways to lower costs,” according to CNBC. 

The airline's quarterly filing with the Securities and Exchange Commission indicate that the company is unsure if it will be able to meet minimum cash-on-hand requirements put in place as part of the end of its bankruptcy.

“The document went on to note steps that Spirit Airlines is taking to try to boost profitability, including restructuring its route network and adding more premium seating onboard because premium leisure travel continues to see relatively high demand across the airline industry,” according to USA Today.

Spirit's credit-card processor recently requested "additional collateral" to renew their deal.

"The airline said it's taking steps to boost its liquidity, including the sale of aircraft and real estate, the sale of excess gate capacity and other cost cuts,” according to Axios. “The company has already implemented ‘network and product enhancements,’ sale-leaseback transactions on spare engines, and other cost cuts, including recently announced pilot furloughs.”

Spirit Airlines hasn’t turned a profit since 2019.

“Last November, the budget carrier became the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago,” according to Forbes. “The airline exited bankruptcy in March. … Spirit has drastically cut capacity, trimming flights by approximately 1 million seats in May and June of this year—a decrease of roughly 24% since last year.”

Shares of parent company Spirit Aviation Holdings dropped more than 40% on Tuesday.

“Uncertainty stemming from President Donald Trump’s sweeping tariffs and budget cuts have prompted travelers to curb spending and reassess plans,” notes Reuters.